Written by Samuel O’Brient | Edited by Cláudio Afonso
Last week, Rivian announced a major milestone. The electric truck and SUV maker has officially started shipping out models of its Gen 2 R1T and R1S EVs with the new tri-motor configuration.
This new feature will give both models a significant power increase as compared to the previous dual-motor that Rivian EVs featured. These 2025 editions of Rivian’s first models are now equipped with an 850 horsepower train, which means 371 Miles Of Range for drivers.
Rivian may be making progress right now but things aren’t going so well for one of its most prominent investors. In June 2024, Rivian stock surged as Volkswagen announced plans to invest $5 billion in the startup, which would be paid up in gradual installments.
Despite being contingent on Rivian “hitting certain milestones,” this investment proved an outstanding growth driving catalyst for both companies. But months later, Volkswagen’s own EV production is facing an uncertain future.
The German automaker recently recalled 100,000 EVs due to problems with their doors closing. This prompted the company to halt production, raising questions about its ability to compete with its rivals as a standalone EV producer.
Even if Rivian’s production problems continue, though, its Rivian investment provides important exposure to the fast-growing EV market. This partnership is clearly beneficial to both parties.
As The Verge reports: “Rivian is adding more configurations in its quest to court more customers and sell more EVs. It needs cash flow to stay afloat in its lead-up to producing its lower-cost R2 SUV in 2026 and the stellar-looking R3 and R3X to follow. Rivian is getting some help from Volkswagen’s investment on that front.”
It’s true that the cash influx from Volkswagen is certainly helping Rivian scale production. But this progress from the startup is keeping the German auto giant in the running while its own attempts to conquer the EV market continue to falter.
While the two companies are technically still competitors, Volkswagen’s Rivian investment could be its saving grace in the coming year.
Rivian is primed to continue growing and widening its share of the EV markets in both the United States. With the new trimotor configuration, it has even more to offer prospective drivers.
As Rivian’s progress continues, Volkswagen may be tempted to invest in the leading EV startup even more.
Written by Samuel O’Brient | Edited by Cláudio Afonso